SBJ 07-2011 by The Southern Illinoisan

JULY 2011

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Inside J U LY |

SPECIAL REPORT Sweet taste of success: One of the bright spots in the economy of Southern Illinois is the vibrant and growing wine industry. We have so many wineries and vineyards within an easy drive, there actually is a location to suit the tastes of any wine customer – upscale foods and grand settings, down-home friendliness and natural surroundings and wine that doesn’t take a back seat to some of the best from California and France. In this report, Cavanaugh L. Gray addresses the question of whether our region’s already great wine scene could be developed into something rivaling the scale of Napa Valley in California. Page 4

WOMEN IN BUSINESS Softer side of marketing: For any business aimed at consumers, the importance of appealing to women cannot be overstated. Women make 85 percent of such purchases and have great powers in stopping family purchases they don’t endorse. How, then, does the savvy business person appeal to female customers? Jane Sanders first stresses the importance of understanding the differences between men and women, who see the sales transactions through different lenses. It’s one of six easy-to-apply strategies that will grow your business. Page 9

ECONOMICS Don’t be too greedy: Investors today likely are so frustrated with low rates of

20 1 1

Carbondale Civic Center ...................... 7

return, some will look in new areas for higher yields. Perhaps that is only natural, but such desires must also be accompanied by an equal amount of awareness of the increased risks that accompany any search for higher yields. Michael P. Tison takes a closer look at four investment offerings that may offer higher yields. Page 11

Southern Illinoisan. Contact us via mail at 710 N. Illinois Ave., Carbondale, IL 62901, or at P. O. Box 2108, Carbondale, IL 62903. Also reach us on the Web at www.sbj.biz and via email at SBJ@thesouthern.com. The Journal is published 12 times per year monthly, and

Custom Cleaners .............................. 22 Datalock .......................................... 20

INDICATORS Second consecutive encouraging month: Unemployment rates and new vehicle sales are key indicators of economic health. In our region, both have been similar to a roller coaster ride since 2008. But the latest data in both measures finds unemployment decreased in all 18 counties of Southern Illinois while new vehicle sales rose in a solid majority of counties. Get the latest on home sales, gas prices, hotel stays and other indicators. Pages 12-13

Dutch Guttering .................................. 7

ACHIEVEMENTS

Jim’s Mobile Offices and Homes ........ 19

Learn the latest: Find out who has been hired, who has been promoted or who has received an award for their efforts in business. Make sure you check out our newest ‘Faces in the News’ collection of business portraits and learn more of achievements and honors in regional businesses. If you know of a business or business person who deserves special recognition for advanced training, a unique honor or a business expansion, please let us know at sbj@thesouthern.com. Page 18

Country Financial, Dennis Woodside .. 19

Feirich, Mager, Green & Ryan.............. 22 Ferrellgas .......................................... 22 Glass Haunt ........................................ 7

John A. Logan College ........................ 24 Oliver and Associates, Inc. .................. 5 Pepsi MidAmerica .......................... 5, 22 Sandberg, Phoenix & Von Gontard .... 20 Shawnee College ................................ 6

Publisher: Bob Williams n 618-351-5038

SIU Credit Union .................................. 8

Editor: Gary Metro n 618-351-5033

Southern Illinois Healthcare................ 10

Advertising: Jason Woodside n 618-351-5015

Southern Illinois University ................ 17

Circulation: Trisha Woodside n 618-351-5035

State Farm Insurance, Bill Ecker ........ 22

Database Coordinator: Mark Doman n 618-351-5042

Williamson County Airport .................. 15

mailed to businesses, community development leaders, chambers of commerce members and other professionals in Southern Illinois. Copyright 2011 by The Southern Illinoisan, all rights reserved. A subscription may be obtained by calling 618-529-5454 or 618-997-3356, or by visiting our website.

JULY 2011

SOUTHERN BUSINESS JOURNAL

Cover Story Goal setting: A critical component for success BY LES O’DELL SBJ CORRESPONDENT

Business leaders and managers face a daunting list of ongoing tasks: marketing, sales, customer service, personnel issues, tracking finances and managing day-to-day operations. With so much on their plate, it’s easy to see why many entrepreneurs and leaders resist goal setting and are even less likely to take the time to reevaluate goals once objectives have been set. That could be a costly mistake in terms of economic success, business growth and even company survival, local experts say. “There’s a misconception that goals are only for the big guys, but that could not be more wrong,” says Cavanaugh L. Gray, a Carbondale-based small business development consultant and owner of The Entrepreneur Café. “Hands down, goals have to be a staple for businesses of every size and type.” Gray says the belief that identifying goals is a one-time activity also is an incorrect concept. He says that goal setting and evaluation must be a regular activity in order for any business to succeed. “Goals go hand-in-hand with business planning,” he says. “Unfortunately, it’s one of those things that because people are so busy doing the day-to-day things, it gets pushed aside. But it’s something that has to be done, and it has to be scheduled as a priority.” Some Southern Illinois organizations, such as Shawnee Health Service, realize the importance of goal setting. Patsy Jensen, Shawnee CEO, says her nonprofit entity takes goals very seriously. “Organizational goals are critical to our success,” she explains. “Our goals are established by our board in a threeto five-year plan. We start with our mission statement, look at our values and visions, then we start looking where we are. The goals are designed to help us in operations, and we use them as an ongoing guide for the corporation.” Steve Karau, a professor of management at Southern Illinois University Carbondale, says Shawnee’s

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Despite business size, business planners must consider many different factors when setting goals.

method — using the company’s mission statement as a starting point — is an excellent way to start the process. “A lot of businesses have a good idea where they want to be without formal goals, and the way goals are set varies from business to business, but regardless, goals are pretty important,” he says. “One place to start is with the mission statement; that will help you identify where you want to be in three to five years.” At one time, Southern Illinois Healthcare established goals only for the coming year. But, in 2007, the organization moved to making threeyear plans. “We felt that the planning horizon needed to be longer,” says Mike Kasser, chief financial officer for SIH. “That’s been a good move. We currently do a three-year strategic plan with the first year being the most in focus, and we try to look out from there.” He says the process is both intensive

and extensive. The corporation has a planning and business development office that gathers statistics, data and reports so that senior management and key personnel can set goals during an annual retreat. “We look at what’s changed in our environment, within our market and our organization when we do our planning,” he says. And, the timing of the goal setting also has changed. “We used to have a process where the strategic plan was completed at about the same time as our budget, but that was too late,” he explains. “Now, we have already done our strategic planning for the next fiscal year which begins in April, so when we get into the budget planning, everyone knows what the goals are.” Jensen says the goal-setting process cannot be solely inwardly focused. “We always look at outside things in our planning and goal setting,” she says. “We come up with emerging issues, and

Find more business news at www.sbj.biz. that’s what we start with — the things that will impact us.” Factors that must be considered include changes in the company’s market, new challenges, trends and regulations, as well as internal considerations such as infrastructure and personnel. Despite business size, Karau says that in goal setting, business planners must consider many different factors. “Your business plan can help identify things that are vital to your business,” he says. “You need to have strategic goals for things like customer service and production, but you also need to think of your stakeholders and what is important to each of them. SEE GOAL SETTING / PAGE 6

SOUTHERN BUSINESS JOURNAL

JULY 2011

Special Report

STEPHEN RICKERL / SBJ

Lucia Amorelli pours a glass for vistors to Orlandini during the 2010 Holiday Open House. Cavanaugh L. Gray, owner of The Entrepreneur Café, (right) attended a wedding with his wife at California’s magnificent wine country. (PROVIDED)

Can Southern Illinois become the Napa Valley of the Midwest? BY CAVANAUGH L. GRAY SBJ CONTRIBUTOR

For years, I have come across articles, read books and seen countless movies depicting the sights and sounds of California’s magnificent wine country. With much Gray urging from my wife, I decided to set work aside in order to attend a wedding with her in nearby St. Helena so that I could see for myself.

If I had to summarize the splendor of this Memorial Day getaway, I would best describe Napa and Sonoma Valley as a well oiled machine of tourism with no sign of letting up. Southern Illinois has an ever-growing list of quality wineries. So, upon my return, I couldn’t help but wonder. Could Southern Illinois become the Napa Valley of the Midwest?

Create a scene The drive from San Francisco with images of rolling hills, beautiful sunshine, quaint inns, restaurants and wineries, with acres of grapes, was one of the highlights of the trip. En route to

our bed and breakfast, we passed the most amazing group of upscale shops. If it wasn’t the shops, it was the small fruit growers selling their harvest by the side of the road. There was the school of culinary arts, other restaurants, antique shops and hosts of other businesses that all understood the importance that their roles play in helping one another and for the greater good of Napa. The wineries may headline that area, but the best supporting roles go to those businesses that work together seamlessly to create one of the most amazing scenes I have come across in a long time. Southern Illinois has a ton going for it, including its access to neighboring state tourism,

the rise of in-state vacationing, scenic drives of its own, top notch wineries and people who want to see this area better. What’s missing are more of the supporting cast businesses, a few huge tourist attractions and possibly a unified brand that speaks for all of Southern Illinois — kind of like the destination feel that has been created for all of Route 66.

Raise expectations One of the other things that stood out about wine country was that every interaction came with the SEE SPECIAL / PAGE 7

SOUTHERN BUSINESS JOURNAL

JULY 2011

GOAL SETTING: A critical component FROM PAGE 3 Another thing to consider would be trends in the industry. You have to factor in economical change because it can influence your goals.” Karau says that business goals must be carefully crafted and put into use. “Goals must have certain attributes,” he explains. “They need to be challenging, realistic, tangible and accepted — meaning that the people who are involved have to buy in to them. They also have to be very specific. ‘Do your best’ doesn’t have the same value as a specific goal.” He adds that, in order to be effective, goals must be revisited regularly. “You have to actively manage them over time,” he says. “A lot of companies will make the mistake of only looking at them once a year. It’s important to build them into your daily systems.” Gray recommends his clients use a system similar to his. “I have a wall where I post ideas, and my outstanding goals are there. I get to see them every day,” he says. Larger entities have to make efforts to revaluate goals. “We have a strategic planning committee that meets quarterly, and they look at changes in the environment that may redirect our objectives,” Jensen says about the process that Shawnee Health Service uses. Kasser says his organization’s goals are constantly in mind. “We try really hard not to set goals and then put them on a shelf,” he says. “We use them for all of our key performance indicators.” Gray suggests that reevaluation of goals is as important as goal setting itself. “You have to make a commitment to revisit your goals and objectives and keep them in front of you,” he says. “People need to get into a habit of checking on those things at least twice a year.” By frequently reevaluating goals, he says businesses can be ready to take advantage of opportunities. “Small business is constantly changing, so you have to schedule a time to sit down with your goals,” he says. “One of the first things to do is to figure out what are the biggest opportunities and obstacles the company is facing and try to identify where pouring energies in will have the

‘Goals go hand-in-hand with business planning. Unfortunately, it’s one of those things that because people are so busy doing the day-to-day things, it gets pushed aside. But it’s something that has to be done, and it has to be scheduled as a priority.’ CAVANAUGH L. GRAY OWNER OF THE ENTREPRENEUR CAFÉ

biggest payoff in the next six to 12 months.” Cheryl Endres, vice president of Silkworm Inc. in Murphysboro, says periodically looking at goals can really help a company. “Goals give us measurements and incentives,” she says. “Plus, by analyzing the previous two or three years, we can determine what more we can do. It helps us know how much we can grow comfortably without effecting our loyal customers.” Gray adds that “checking in” on goals also can help companies prepare for tough times. He says one example is Krispy Kreme. He says the doughnut company missed the low-carb trend and was ill-prepared to make any changes. “Now, they have to play catch-up and they’re almost struggling to stay relevant,” he says. He adds that especially with the recent economic downturn, it’s easy to point to locally owned businesses that failed because they didn’t see the slowdown coming. “Goals can help any company be proactive, regardless of the situation,” he says. “They can help keep you from falling into a reactive mode.” He adds that if any business wants to be successful, goals — both long-term and short — must be in place. SIH’s Kasser agrees. “Goal planning is our road map,” he says. “It’s a very high priority.” LES O’DELL of Carbondale is a regular contributor to Southern Business Journal and The Southern Illinoisan.

JULY 2011

SOUTHERN BUSINESS JOURNAL

SPECIAL: Could Southern Illinois become the Napa Valley of the Midwest? FROM PAGE 4 5-star treatment. The young woman at the San Francisco Office of Tourism was the most knowledgeable tourist official I have ever come across. At Beringer Vineyards, our tour guide (John) who had been at Beringer for 10 1/2 years, discussed the history of wine making in Napa. He talked about the founders, the wine making process, the soil and all things in between. By the time we finished our tour, I felt as if I had just watched a History Channel documentary. Wine specialist Spencer at Dean & Deluca took time to help us pair our taste to local wines. And, Chris, who managed our bed and breakfast, made sure that we did not want for anything during our three-day stay. When all was said and done, everything that I thought I knew about fine cuisine, good wine and unique cheeses had all been erased. I found that the area, as a whole, had educated me on what makes it special and, in the process, raised my

Transforming the region into a Midwest destination of Napa’s magnitude will not happen overnight, but with a lot of like-minded entrepreneurs moving in the same direction, you never know what could happen. level of expectation. The experience made me wonder how Southern Illinois could leave its visitors wanting for more.

Opportunities abound I bring up the former points only to say that if you have been thinking of a business idea, especially one that piggybacks on this area of tourism, then there is no time like the present as opportunities abound. Entrepreneurs, if you are listening, here is my take on some opportunities that might go over well as compliments to Shawnee Wine Trail or as a stand-alone business. I won’t do much to expand on these ideas. (I’ll leave that up to you.) But, I do encourage you to take these suggestions as just that — mere suggestions.

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Garden-fresh dining: Yes, restaurants are the riskiest of ventures, but what if it created a totally different experience? An establishment would set right in the place where its fruit and vegetables were grown, with meat, poultry and fish all brought in locally. Customized wine/history tours: What if a tour operator provided customized wine or history tours catered to the unique interest of an individual, family or very small group? Create a sampler: Could the various wineries create a sampler of red, white and dessert wines that would showcase the best the wine trail has to offer to those passing through? Entertain me: Adults and kids need more things to do in the area — a great miniature golf experience, a building

Find more business news at www.sbj.biz. packed with those inflatables. And, I will gladly pay for one of those hot air balloon rides. My point is that if it’s entertaining, it just might have a chance. Transforming the region into a Midwest destination of Napa’s magnitude will not happen overnight, but with a lot of like-minded entrepreneurs moving in the same direction, you never know what could happen. Got any good ideas on the topic? I would love to hear from you. CAVANAUGH L. GRAY is director of business development for The Entrepreneur Café, LLC in Carbondale and can be reached at 618-206-7013. For more winning small business ideas or for information on how to start, grow and succeed in small business, be sure to follow The Entrepreneur Café, LLC at www.twitter.com/TheECafe or www.ecafellc.com.

JULY 2011

SOUTHERN BUSINESS JOURNAL

Women in Business Seeking women customers? Build your business base by following simple guidelines BY JANE SANDERS SBJ CONTRIBUTOR

Why target women? Because they make or influence nearly 85 percent of all purchases, and they have strong veto power. But women don’t buy the same way men do. They Sanders have different styles, motivators, reasons and approaches. There are exceptions, but the tips below (just a few of many) provide a brief outline and will apply to most women and help you increase sales to this huge and growing market. Understand how men and women are wired differently: For survival reasons, stemming back to the origin of our species, men and women are very different biologically and behaviorally. Every physiological system in the human body varies between men and women, especially the brain. Men are built and wired for independence, status, competition and superiority. Women are wired for consensus, collaboration, connection and harmony. We view and approach the world and our interactions, including sales transactions, through these widely different lenses. It’s important to understand what these biological and social differences are and how they impact our dealings with each other. Respect her and her time: Take her questions and concerns seriously. Be courteous, say please and thank you, and don’t give her any patronizing compliments. Validate her stress and desire for convenience, and make buying from you easy for her. Be aware she has likely done considerable research before approaching you. She may know more than you, or more than you think she knows, about your product and/or competition. Always be professional in every way.

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Every physiological system in the human body varies between men and women, especially the brain. Men are built and wired for independence, status, competition and superiority. Women are wired for consensus, collaboration, connection and harmony.

Focus on the relationship, not the sale: She needs to feel valued and important, connected, that you care about what’s best for her. She’s in it for the long term, hopefully not just the one transaction. Partner with her; don’t sell her. Build rapport with her; make her laugh. Focus first on making a friend, and establish the trust she needs to feel safe with you as her business partner. Communicate with her style: Everything about your communication — content, facial expressions and body language — should indicate that you are interested (professionally), engaged, friendly, sincere, respectful and there to help. She is watching for reasons to trust or mistrust you, to connect with you or to walk away. Give her the details she asks for, whether or not you think they are necessary. (This module of my “Selling to Women” program is the most comprehensive, with dozens of specific how-to’s.) Honor her decision-making style: In most cases, she has done some homework and

often will keep her knowledge to herself and compare it to what you tell her. She is looking for honesty, so she can develop trust. She is looking for the best possible option or solution and often will take longer than a man to make a final decision. She wants to get educated about her options, and she first wants to build connection and trust, whether she realizes it or not. She is looking for a collaborative partner. If she says she is just looking, or needs to think about it, she means it. Don’t rush her. Provide stellar service: Women are networkers and tell many people about their experiences, both good and bad. Be on their good list. Give them great service to talk about. Exceed their expectations. Make buying from you an experience, not a transaction. Follow up. Examine every single aspect of your process, product, facility and staff, and make them all women-worthy — worthy of earning lifelong loyalty and referrals to her friends (which include other women in a checkout

line, who happen to mention dissatisfaction with their resource. She will tell them about you!) Taking the time to learn how to sell to women and develop a successful working relationship with them are definitely worth it for two primary reasons. First, doing so will help all of your sales efforts, those with men, as well. It will help all of your existing relationships, too, at work and at home. Second, women generally are more loyal than men and give more referrals. The effort you put in, the investment of your time and learning, often will come back in spades as your web of women clients grows in all directions. JANE SANDERS is a speaker, trainer and facilitator in the areas of gender communication, recruiting and retention of women, selling to women, strategic life planning, presentation skills, and authentic leadership confidence. Reach Jane 618-2045540; jane@janesanders.com; www.janesanders.com.

JULY 2011

SOUTHERN BUSINESS JOURNAL

Economics Don’t over-reach for yield: Consider risks, too BY MICHAEL P. TISON SBJ CONTRIBUTOR

Investors frustrated with the low yields currently available from traditional incomeproducing vehicles may be tempted to consider investments that offer higher yields. Tison That’s understandable, but you can obtain higher yields only by assuming higher amounts of risk, and there are many different types of risk. So, it is important to understand your risk tolerance, because a common denominator with investments that may offer higher yields is that the value of your principal may fluctuate. If that price volatility is going to keep you up at night, it may be better to stick with more conventional investments. With that as background, here’s a brief guide to four investment vehicles that may offer higher yields.

a mutual fund does not guarantee a profit, or protection against a loss. Any amount invested in this area should not represent a significant portion of your assets.

Real estate investment trusts REITs trade like stocks on the major exchanges and invest in apartments, hotels, office and retail space, health care-related properties, mortgages, storage unit companies and other types of real estate. REITs are legally structured in a way that enables them to pass the rental income from their holding through to investors, and REITs also offer the advantages of liquidity, professional management and diversification. Moreover, some of them offer very attractive yields. That said, investors should be aware that the prices of REITs can fluctuate dramatically, and the income is not guaranteed. In addition, if the values of the type or location of properties a specific REIT invests in decline, its value also decline.

Master limited partnerships High-yield or “junk” bonds These are bonds issued by companies whose financial strength is somewhat questionable, and therefore the companies are rated below investment grade (below BBB — by S&P) and have to pay higher rates to borrow money. Compared with traditional investment grade bonds, high-yield bonds carry higher risks, including a higher risk of default, limited liquidity and greater susceptibility to significant and sudden price movements. Generally speaking, the lower the credit quality of the company, the higher the yield it has to offer to attract investors. Few individual investors can analyze and evaluate these types of bonds; so, if you’re going to invest in high-yield bonds, it may be best to do so through a mutual fund that can offer specialized expertise and the benefit of diversifying among a large number of bonds. Please remember that the mutual fund will have the same risks as the individual bonds, and the diversification offered by

An MLP is a publicly traded partnership that, similar to a REIT, is structured so it can pass its income through to its investors. Most MLPs are in the oil and gas industry, or a related field such as pipelines and storage, and the amount of income they are able to generate is related to the price and volume of the product they handle. The key with MLPs — and with REITs — is to look at what’s known as their distributable cash flow, which is basically the money they are generating to pay their investors. With both MLPs and REITs, you want to be sure their payouts amount to less than 100 percent of distributable cash flow. If the payout is more, then the company will have to borrow or raise money in some other way to make the payments. Again, this type of investment requires individual analysis of the company.

Closed-end funds These are investment companies that raise capital through an initial public

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It is important to understand your risk tolerance, because a common denominator with investments that may offer higher yields is that the value of your principal may fluctuate.

Find more business news at www.sbj.biz. offering (IPO) and then are structured, listed and traded publicly like a stock. Although they invest in securities like open-end mutual funds, the prices of the closed-end funds are determined not only by the prices of the securities they own, but also — like stocks — by supply and demand. While this means they can be much more volatile than mutual funds, it also means an investor can sometimes buy closed-end funds at a discount to their underlying values. However, when this is done, there is no assurance that the fund’s price will appreciate to its net asset value. Many closed-end funds use leverage (borrowing against their portfolios to purchase additional securities), which can help them achieve high yields, but also raises their risk level. It’s wise to think carefully about what role, if any, these types of investments should play in your overall income needs. Since they are, by definition, more volatile and more risky, they

definitely don’t belong in the income portion of your portfolio that’s meant to cover basic, short-term expenses. Instead, think of these and similar investments as longer-term commitments that may raise the overall yield of your portfolio aimed at generating income for less critical expenses. And, last, but definitely not least, don’t take on more risk than you can tolerate, and be aware that minimizing one type of risk may, perhaps inadvertently, mean you are increasing another type. For example, non-dollar investments, such as foreign bonds, might carry attractive yields, but they also carry currency risk, as well as geopolitical risks. Diversifying the risk components of your fixed-income portfolio, and matching them to your personal circumstances, is critical. MICHAEL P. TISON is an investment adviser and registered principal with Raymond James Financial Services, Inc., with offices in Harrisburg and Marion. He can be reached at 618-253-4444 or michael. tison@raymondjames.com.

Retail sales for Southern Illinois cities City Anna Benton Carbondale Carterville Chester Du Quoin Harrisburg Herrin Jonesboro Marion Metropolis Mount Vernon Murphysboro Nashville Pinckneyville Red Bud Sparta Vienna West City West Frankfort REGION ILLINOIS

YTD March 2011

2010

2009

2008

2007

2006

29.5 20.8 156.5 10.3 13.0 27.3 53.6 36.8 2.8 169.6 27.1 130.5 32.9 25.5 10.0 17.6 30.9 8.9 20.7 31.2 $855.5 $37,011.4

120.9 69.5 598.0 42.2 55.3 77.1 195.0 153.4 11.8 683.1 82.0 507.0 130.6 96.6 38.5 75.2 128.5 39.9 87.8 112.4 $3,304.8 $147,232.0

114.5 69.4 565.5 39.9 52.9 100.8 191.9 147.2 12.5 676.0 77.1 476.7 129.1 107.9 37.2 70.1 126.4 37.1 91.9 111.4 $3,235.5 $139,593.2

113.3 71.4 587.7 40.1 51.5 91.9 179.3 135.9 12.4 673.4 75.9 482.8 117.1 101.8 39.0 77.7 130.5 40.5 89.6 111.2 $3,223.0 $237,438.0

112.3 72.4 607.4 40.3 51.7 94.4 173.6 134.4 11.3 662.4 79.8 461.5 94.9 105.2 35.8 73.7 129.5 39.8 82.8 111.4 $3,174.7 $180,162.7

111.7 75.0 610.4 39.9 54.0 103.1 168.5 137.5 11.5 592.7 74.8 501.0 93.0 105.7 41.7 82.5 133.1 36.9 77.7 106.8 $3,157.6 $173,362.8

N I L L I Chicago Fed Midwest % change 06-10 Manufacturing Index

p q q p p q p p p p p p p q q q q p p p p q

8.2% 7.3% 2.0% 5.8% 2.4% 25.2% 15.7% 11.6% 2.6% 15.3% 9.6% 1.2% 40.4% 8.6% 7.7% 8.8% 3.5% 8.1% 13.0% 5.2% 4.6% 15.1%

The CFMMI is a monthly estimate by major industry of manufacturing output in the Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan and Wisconsin. It is a composite index of 15 manufacturing industries, including auto and steel, that uses electrical power and hours worked data to measure monthly changes in regional activity. It is compared here to the national Industrial Production index for Manufacturing (IPMFG). Base year is 2007. Starting in November 2005, the index excluded the electricity component. 105 104 103 102

IPMFG April 11 90.7

100 98 94 90 88 86 84 82

SOURCE: LATEST STATISTICS AVAILABLE FROM THE ILLINOIS DEPARTMENT OF REVENUE. FIGURES ARE IN MILLIONS.

81 80

Unemployment rates for Southern Illinois counties, state and nation Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Washington White Williamson .,REGION ILLINOIS U.S.

Labor force

Jobless

2,984 17,961 2,620 4,036 1,866 33,701 20,334 5,242 7,192 9,500 1,935 2,836 15,409 13,251 8,427 8,304 7,767 35,388 198,753 6,569,973 152,898,000

300 1,838 209 328 170 2,149 1,603 460 601 921 158 260 1,123 1,113 862 508 554 2,729 15,866 567,411 13,237,000

April 2011 March 2011 April 2010 10.1% 10.2% 8.0% 8.1% 9.1% 6.4% 7.9% 8.8% 8.4% 9.7% 8.2% 9.2% 7.3% 8.4% 10.2% 6.1% 7.1% 7.7% 8.0% 8.6% 8.7%

11.9% 11.4% 8.6% 9.4% 10.5% 7.0% 8.6% 10.1% 8.7% 10.9% 9.3% 9.3% 8.1% 9.3% 11.6% 6.7% 8.0% 8.9% 8.9% 9.1% 9.2%

9.8% 12.4% 9.8% 8.9% 11.3% 7.2% 9.4% 10.3% 8.9% 12.0% 9.8% 11.2% 8.9% 9.7% 12.0% 7.9% 8.5% 9.2% 9.8% 10.6% 9.8%

SOURCE: ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY, U.S. DEPARTMENT OF LABOR. FIGURES ARE NOT SEASONALLY ADJUSTED.

Change month q q q q q q q q q q q q q q q q q q q q q

1.8 1.2 0.6 1.3 1.4 0.6 0.7 1.3 0.3 1.2 1.1 0.1 0.8 0.9 1.4 0.6 0.9 1.2 0.9 0.5 0.5

Change year p q q q q q q q q q q q q q q q q q q q q

76 74

CFMMI April 11

0.3 72 83.6 2.2 70 68 1.8 0.8 66 2.2 64 S O N D J F M A M J J A S O N D J F M A ’11 ’10 ’09 0.8 1.5 SOURCE: FEDERAL RESERVE BANK OF CHICAGO 1.5 0.5 2.3 1.6 2.0 April 11 April 10 Change 1.6 1.3 MONTHLY TOTALS 1.8 648 586 p 10.6% 1.8 YTD TOTALS 1.4 1.5 2,649 2,086 p 27.0% 1.8 2010 2009 Change 2.0 ANNUAL TOTALS 1.1 7,478 2,750 p 171.9%

Williamson County Regional Airport passengers

I S I N Consumer credit score

Credit scores are numeric reflections of financial behavior and credit worthiness and they are based on information included in a credit report. Ranging from 330 to 830, a higher score means a lower credit risk. Scores are from June 2011.

698

Metropolis

Region

699

692

State

U. S.

O R S U of I Flash Index

Total cars, trucks sold based on title applications filed. Excludes motorcycles, trailers.

New vehicle sales April 11 April 10 12 83 17 23 10 92 93 28 29 55 7 10 93 83 29 29 32 199 924

694

SOURCE: EXPERIAN

Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Washington White Williamson REGION

Change

p 20.0% p 31.7% p 41.7% p 43.8% p 11.1% 0.0% p 89.8% q 28.2% p 16.0% p 25.0% p 40.0% 0.0% p 69.1% p 13.7% q 23.7% q 34.1% q 20.0% p 41.1% p 20.8%

10 63 12 16 9 92 49 39 25 44 5 10 55 73 38 44 40 141 765

2010 126 965 222 236 97 1,320 848 327 269 558 73 129 844 793 486 446 571 1,796 10,097

2009 137 989 184 224 94 1,348 842 353 278 565 85 124 936 719 447 515 471 1,868 10,179

q q p p p q p q q q q p q p p q p q q

Change 8.0% 3.3% 20.7% 5.4% 3.2% 2.1% 0.7% 7.4% 3.2% 1.2% 14.1% 4.0% 9.8% 10.3% 8.7% 13.4% 21.2% 3.9% 0.8%

Home sales Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Williamson ILLINOIS

6 54 2 3 3 57 45 16 14 18 1 0 19 26 26 78 18,940

Q1 10 4 59 1 0 3 68 45 17 21 28 3 1 30 28 17 121 21,320

SOURCE: ILLINOIS ASSOCIATION OF REALTORS

Change

p 50.0% q 8.5% p 100.0% NA 0.0% q 16.2% 10.0% p 5.9% q 33.3% q 35.7% q 66.7% q 100.0% p 36.4% q 7.1% p 52.9% q 35.5% q 11.2%

May 11 96.8

2010 19 259 8 8 8 358 264 78 91 116 8 6 131 122 84 590 103,455

2009 15 258 9 7 13 382 278 64 92 126 6 13 135 100 94 654 107,782

p p q p q q q p q q p q q p q q q

' 08

' 09

' 10

' 11

SOURCE: INSTITUTE OF GOVERNMENT AND PUBLIC AFFAIRS, UNIVERSITY OF ILLINOIS

Hotel/motel stats

Consumer Price Index

Total amount of revenue generated in Carbondale by hotels and motels for room rentals only.

The CPI measures average price changes of goods and services over time, with a reference base of 100 in 1982-84.To put into context, a current CPI of 194.5 means a market basket of goods and services that cost $100 in 1982-84 now costs $194.50.

Feb 11 Feb 10 MONTHLY TOTALS

Change

$491,008 p

$497,450

YTD TOTALS

$917,273 p

$924,422

2009 ANNUAL TOTALS

2008

Change 26.7% 0.4% 11.1% 14.3% 38.5% 6.3% 5.0% 21.9% 1.1% 7.9% 33.3% 53.8% 3.0% 22.0 % 10.6% 9.8% 4.0%

$25,000 $42,550 $18,250 $89,900 $50,000 $79,900 $70,000 $88,000 $84,000 $55,000 $38,000 $0 $74,500 $54,700 $110,000 $85,000 $131,175

$24,500 $50,000 $25,000 $0 $146,000 $108,000 $60,000 $90,000 $59,900 $56,000 $30,000 $74,000 $65,950 $43,500 $58,000 $82,000 $144,000

1.3%

U.S. city average April 11 224.9

226

224

0.8%

Change

$7,520,856 p

MEDIAN SALES PRICE Q1 11 Q1 10

Total units sold, including condominiums

Q1 11

108 107 106 105 104 103 102 101 100 99 98 97 96 95 94 93 92 91 90 89

$7,725,727

SOURCE: ILLINOIS SECRETARY OF STATE’S OFFICE. LATEST DATA AVAILABLE.

The Flash Index is an early indicator of the Illinois economy’s expected performance. It is a weighted average of growth rates in corporate earnings, consumer spending and personal income. An index above 100 indicates expected growth; an index below 100 indicates the economy is contracting.

222

220

218

2.7%

Midwest urban April 11 214.5

216

214

p q q

q q p q p q p q p p p p q

Change 2.0% 14.9% 27.0% NA 65.8% 26.0% 16.7% 2.2% 40.2% 1.8% 26.7% 100.0% 13.0% 25.7% 89.7% 3.7% 8.9%

212

210

208

206 A

‘10

F ’11

SOURCE: U.S. DEPARTMENT OF LABOR

Prices at the pump Average price per gallon of regular, unleaded gas as of May 31 and June 21, 2011.

June 11 Metro East Springfield Illinois U.S. SOURCE: AAA

$3.71 $3.49 $3.88 $3.64

May 11 June 10 $3.80 $3.86 $4.05 $3.78

$2.86 $2.76 $2.87 $2.74

SOUTHERN BUSINESS JOURNAL

JULY 2011

Investments Why REITs are attracting investors again In a dismal real estate market, some see a prime opportunity BY SCOTT MCCLATCHEY SBJ CONTRIBUTOR

This may be a great time to get into a Real Estate Investment Trusts. If you’re trying to sell commercial or residential real estate today, you face quite a challenge. On the McClatchey other hand, buyers are seeing all kinds of opportunities to pick up properties at depressed prices. You may want to seize these opportunities, but you may not want to manage property. Is there a way you can invest in real estate without turning into a landlord? There is. REITs allow you to get into the commercial real estate sector without the hassles of property management. You may assume that REITs have taken a pounding recently. You would be wrong. REITs have outperformed stocks in the last couple of years. The total return for the FTSE NAREIT All-Equity REIT Index was +27.95 percent last year. The total return of the FTSE NAREIT All-REITs Index was +27.58 percent. Compare that to a total return of +15.05 percent for the S&P 500. With reduced real estate valuations and stricter credit terms, the present commercial real estate market has many distressed owners and properties, so now may be a prime time to get into a REIT in pursuit of dividends and longterm appreciation. According to data from Real Capital quoted by Bloomberg, the average capitalization rate on commercial properties (excluding hotels) was 7.2 percent as of 4Q 2010. Stack that up against the yield from a CD, a corporate bond or a 10-year Treasury. What do you own when you invest in a REIT? An equity REIT offers investors an opportunity for fractional ownership

REITs offer another way to diversify. If you own a bunch of stocks and funds, they give you a chance to broaden your portfolio. If you own real property already, they still offer you a nice avenue for diversification. Find more business news at www.sbj.biz. of a real estate portfolio. The portfolio commonly includes high quality commercial properties, such as shopping malls, apartment buildings and office complexes, and sometimes even things like golf courses or resorts. Some REITs have little to no investment minimums, so they allow the small investor an easy entry into the major leagues of commercial real estate. While investors own common shares in the REIT, there is a wrinkle that distinguishes a REIT from a corporation. A REIT has to pay out 90 percent of its operating profits as dividends. This exempts a REIT from having to pay corporate income tax. What’s the potential downside? There is basically an inverse relationship between REIT share prices and interest rates. When interest rates spike, REIT shares can dramatically lose value. (Of course, the resulting selloffs may present REIT investors with buying opportunities.) The regular dividend payments a REIT makes can also become a hindrance. When you’re routing at least 90 percent of your taxable profit back to the shareholders, you’ve got less than 10 percent of it to reinvest. For this simple reason, most REITs grow slowly. Also understand that shares in nontraded REITs are generally considered

illiquid until the REITs’ exit strategy either returns investors’ principal or lists on a public exchange. No public market exists for shares of common stock of a non-traded REIT. Even if investors can sell their shares through a secondary market, it is likely that they will have to sell them at a significant discount from the public offering price. The REIT may not achieve its desired diversification or investment objectives or be able to pay dividends. The shares, when redeemed, may be worth more or less than the offering price. If the value of the assets in which the fund invests declines, investors’ shares may lose value. The REIT could be vulnerable to economic and geopolitical conditions. For example, a REIT that invests in the office sector may be negatively affected by an economic downturn that leads to tenant default or vacancies.

A look at the REIT varieties There are three different classes of REITs. Equity REITs invest in hard assets (real property). The vast majority of REITs are equity REITs, and most of them specialize in an income property type. There are apartment REITs, retail REITs, industrial REITs and so forth. Mortgage REITs do not invest in hard assets. Instead, they take out short-term loans to buy mortgage-linked securities. Their profits stem from the difference between the long-term interest rates of the bonds and the short-term interest rates paid on the loans. Hybrid REITs invest in commercial properties and mortgage-linked securities. In addition, there are traded and non-traded REITs. Public REITs trade on an exchange, and therefore offer more liquidity to an investor. The downside, naturally, is that they also expose an investor to market volatility. Private REITs are not (yet) publicly traded and reduce the degree of volatility for the investor. Liquidity can be an issue as you have to sell shares

through the REIT company, unless another investor in the REIT steps up to buy them. The dividend income from a REIT may produce a bond-like yield and can potentially amount to a very nice income stream. REITs offer another way to diversify. If you own a bunch of stocks and funds, they give you a chance to broaden your portfolio. If you own real property already, they still offer you a nice avenue for diversification. If you are a sole owner of an income property, you are positioned to receive 100 percent (or nearly 100 percent) of the profits when you sell it. However, you must shoulder the burden of property management yourself or screen for a competent, attentive thirdparty manager, and you are also poised to personally absorb any loss or unforeseen costs. Sole ownership includes sizable risks. In contrast, an equity REIT might own dozens, hundreds or even thousands of income properties, and all of them are professionally managed, often by a single firm owned by the REIT. So, investing in real estate through the REIT gives you a quality of diversification you couldn’t possibly attain as a small investor, a quality of property management that the small investor seldom sees, and the leadership of veteran commercial real estate investors making the buy and sell decisions, along with the potential for a nice dividend. SCOTT MCCLATCHEY is a certified financial planner with Alliance Investment Planning Group, a Carbondale-based investment firm located at 115 S. Washington St. He can be reached at 618-519-9344 or scott@allianceinvest mentplanning.com. He also provides investment, retirement planning and insurance services to SIU Credit Union members through a partnership called SIU Credit Union Investment Services. Securities offered through LPL Financial, Member FINRA/SIPC.

JULY 2011

SOUTHERN BUSINESS JOURNAL

Elder Law Asset protection planning: A form of insurance BY RICHARD HABIGER SBJ CONTRIBUTOR

Asset protection planning is a form of insurance. You insure your car, your house, your health, your life. You also should insure your other assets, your savings, your Habiger investments, your farm or business, etc. Asset protection planning is used to protect personal assets from business deals gone bad, litigious persons, disgruntled employees and other collection efforts. For a professional, such as a surgeon, asset protection

planning allows the physician to protect his or her loved ones by protecting personal assets, whose value exceed the policy limits on malpractice insurance. For a small business owner, asset protection planning allows you to protect your personal assets from business deals gone badly, whether partnership disputes or lawsuits by customers, vendors or disgruntled employees. For an elderly person, who may need back-breakingly expense nursing home or assisted living care, asset protection planning can be used to transfer assets to children as part of a plan to make an estate Medicaid-ready. In short, asset protection planning allows you to build a wall around your assets, and thus avoid or reduce the risk of the loss of all that you have worked a lifetime to build and grow.

A Domestic Asset Protection Trust, also known as self-settled trusts, is often used as one entity in a well-crafted asset protection plan. Add a couple of limited liability companies, comply with fairly simple rules, and any moderate estate can have the protection, insurance, of a DAPT against the most determined of creditors. While there are 13 states that provide protection for DAPTs, not all states have equally strong laws. For example, every DAPT state has waiting periods, or statutes of limitations (two, three or four years), for certain protections to become effective. If you are trying to deter predators and creditors, you want to look for a jurisdiction with the shortest statute of limitations, the least loopholes and the greatest protection. Two states (Nevada and Hawaii) have

a two-year statute of limitations; thus, they provide the shortest period during which assets would remain vulnerable. Two other states (South Dakota and Utah) have a three-year statute of limitations, while all other states have a four-year period of limitations during which assets would remain vulnerable. Twelve of 13 states that have DAPT laws have statutory exceptions to creditors, such as divorcing spouses and pre-existing tort creditors. Nevada is the only state whose DAPT laws do not allow an exception to creditors. Delaware is one of the big four asset protection trust states. However, it has a long, four-year statute of limitations. Also, divorcing spouses and pre-existing tort creditors can gain access to assets of SEE ASSET PROTECTION / PAGE 23

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SOUTHERN BUSINESS JOURNAL

JULY 2011

Employment Law Missing work because of a workplace injury can involve multiple laws BY ED RENSHAW SBJ CONTRIBUTOR

There has been a lot of focus lately on the Illinois Workers’ Compensation Act, which governs worker injuries suffered while on the job. However, when an employee is hurt on the job, Renshaw more than just the Workers’ Compensation Act might be involved. Depending on the severity of the injury, two federal laws may have something to say about the rights of an employee hurt at work. They are the Family and Medical Leave Act and the Americans with Disabilities Act. Coordinating the requirements of these three laws can be a challenge. The Workers’ Compensation Act applies to any Illinois employer with at least one employee. Through insurance (or self-insurance), all Illinois employers with one or more employees must provide those employees with necessary medical treatment and disability compensation for time off from the job due to work-related injuries. The disability compensation amount is twothirds of the employee’s average weekly salary. Depending on how bad the injury is, the compensation can be short-term or permanent. So, under the law, an employee is entitled to be paid compensation for missing work due to a work-related injury. The FMLA applies to employers with 50 or more employees and covers employees who have a “serious health condition” that prevents them from performing one or more essential functions of their jobs. If an employee is unable to work due to a serious health condition, he or she is entitled to up to 12 weeks of unpaid leave time and must be returned to the same job at the end of the FMLA leave. However, the employee may use (or be required by the employer to

Find more business news at www.sbj.biz. use) any available paid leave such as sick leave, vacation days, personal days or workers’ compensation leave. To be eligible for the FMLA leave, the employee must have worked for the employer at least one year and have worked at least 1,250 hours in the year preceding the leave request. The ADA applies to employers with 15 or more employees and protects disabled employees and job applicants from discrimination based on a disability. Under the ADA, a person is considered to be disabled if he or she has a physical or mental impairment that substantially limits one or more major life activities. The disabled employee or applicant must be able to perform the essential functions of the job with or without a reasonable accommodation. Time off from work to deal with issues related to a disability can be considered a reasonable accommodation under the ADA. As with the FMLA, the employee may use (or be required by the employer to use) any available paid leave such as sick leave, vacation days, personal days or workers’ compensation leave. So, all three of these laws may cover an employee’s time off from work due to a medical condition that is work-related. An employee injured at work may be entitled to paid time off under the Workers’ Compensation Act, unpaid time off under the FMLA and unpaid time off under the ADA if the injury is severe enough to classify it as a disability. And, depending on the decisions of the employee and employer, time off under the FMLA and the ADA could be paid, rather than unpaid. This application of all three laws to the same situation can create some tough questions. First, can the injured employee be required to return to work in a light duty position? Under the Workers’ Compensation Act, the employee can be

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When an employee is hurt, more than just the Workers’ Compensation Act might be involved.

required to take a light duty job, but the FMLA does not permit that requirement. Under the ADA, an employee can refuse a light duty request, but if the light duty is a reasonable accommodation, the employer can assert that the employee can be terminated for the refusal. Second, can the time off from work, due to a work-related injury, be counted as part of the 12 weeks available under the FMLA? Yes, it can. Employers should always count days off for a workers’ compensation injury as days off under the FMLA. If that is not done, employees can receive far more time off than permitted under the FMLA. Finally, can an employee, who is receiving workers’ compensation payments, be required to use paid time off (such as vacation or personal leave days) in place of the compensation under

the Workers’ Compensation Act? The U.S. Department of Labor says, “No.” So, employers should not attempt to have paid time off substituted for compensation payments for a workrelated injury. So, whenever an employee is injured on the job, you need to consider whether more than just the Workers’ Compensation Act is involved. EDWARD RENSHAW is a partner with the Carbondale law firm of Feirich/Mager/ Green/Ryan. F/M/G/R is a general practice law firm offering a full range of legal services, including labor and employment law, commercial transactions, banking, real estate, workers’ compensation, municipal law and estate planning. The firm’s telephone number is 618-529-3000 and its website is www.fmgr.com.

Congratulations! Governor’s Award for SMALL-SIZED COMPANY CATEGORY Governor Pat Quinn presents Dr. Hurley Myers, President of DxR Development Group, with an Illinois Export Award in Chicago on June 21, 2011.

New Exporter

2011

DxR Development Group, Inc.

The International Market: Essential to Our Success DxR Development Group, Inc., a Carbondale-based company, is a service and publishing company that develops, markets, and licenses high quality, interactive software products designed for the worldwide healthcare education market. Exporting is an important part of DxR Group’s current success, and in fact, their survival as a company in this very competitive international market. Currently DxR Group has 15 employees who design, test, and prepare all software, with 8 of those employees efforts focused solely on the global marketplace. Plans to increase the staff to include 2-5 new employees are slated over the next two years.

CAMPCEO CRASH COURSE 2011

For High School Aspiring Entrepreneurs When: Friday, July 22/8:30 AM – 6:00 PM Where: Dunn-Richmond Economic Development Center Southern Illinois University Carbondale 150 E. Pleasant Hill Road, Carbondale, IL. 62903 Register: RSVP by July 15 to 618-536-2424 or online at www.siusbdc.com Cost: $49 per person (includes all materials, T-shirt and food for the day)

618-453-3805

COLLEGIATE CAMPCEO 2011 SALUKI OPERATION BOOTSTRAP

Are you a SIUC student with entrepreneurial spirit who: * Has a great business idea? * Wants grant money to help launch your company? * Needs help developing your idea? * Wants to stay in southern Illinois and start your own business? CampCEO could be your gateway to business ownership. Upon successful completion of training, participants will compete for up to $40,000 in cash prises plus additional professional consulting, software, and books. For information or to apply, call 618-453-3805, email or visit our website: www.surveymonkey.com/s/salukibootstrap2011 TO APPLY, COMPLETE ONLINE APPLICATION NO LATER THAN 5PM ON FRIDAY, JULY 22, 2011.

SOUTHERN BUSINESS JOURNAL

JULY 2011

Achievements Sims earns AHA certification

Faces in the news

Steve B. Sims, principal architect with Architechniques, Ltd., recently earned Certified Healthcare Constructor status from American Hospital Association. Sims is a graduate of Herrin High School and Southern Illinois University. He has designed projects for many local Southern Illinois hospitals and health care institutions.

Brad Small, a shareholder, has been reappointed to and named chairman of the Commercial, Banking and Bankruptcy Law Section Council of the Illinois State Bar Association. Small, a longtime ISBA member, has been recognized as a Leading Lawyer by his peers, a distinction given to less than 5 percent of Illinois lawyers.

Shamrock Antiques opens in JC Sherwood

Small

Huebner

Sitter

Snavely

Madden

American Classic Tours welcomes Tradewind Christopher Sollers, president of American Classic Tours of Marion, recently welcomed Shirley Clayton and Tradewind Tours and Vacations of Nashville to its growing travel family. Sollers said Tradewind Tours and Vacations has developed an established track record in Southern Illinois during the last 31 years.

Shamrock Antiques opened recently at 900 N. Grand Ave. in Johnston City. Owner Teresa Ewell has been in the antique business for 18 years, and she teaches continuing education classes on antiques at John A. Logan College. She is a multi-dealer, who conducts estate sales and offers consignment. Hours of operation are 10 a.m. to 5 p.m. Tuesday through Saturday. Contact Ewell at 618-303-3486 or 618-983-5200.

Gray honored for performance

Tip Toe Nail Salon opens

Gary Gray, a financial advisor for Edward Jones in Herrin, recently was honored by the firm during the Managing Partners Conference for his job performance. He was one of only 350 out of more than 12,000 Edward Jones financial advisors invited to attend the conference. Gray has been an Edward Jones financial advisor for 17 years.

Faces in the news Have you been promoted? Send a photo. Has a colleague at work completed an intensive continuing education program? Send a photo. Others in the business community will want to know it, so please consider passing on your employment news and photos to the Southern Business Journal. Feel free to email the information to sbj@thesouthern.com.

Find more business news at www.sbj.biz.

Doctoral degree earned Joshua Anderson of Marion, an employee of Joyner Therapy Services of Marion for six years, is the first graduate to receive a doctoral degree in physical therapy from the University of Findlay in Ohio. Anderson completed the weekend PT program, with classes meeting on campus every other weekend throughout the year. He will continue to work with Joyner Therapy Services.

Sherwood receives honor Country Financial Agency manager Kevin Sherwood of Harrisburg recently received the Diamond International Management Award for excellence in management. Sherwood manages the Southeastern agency. He serves clients from his office at 1023 U.S. 45 in Eldorado.

Tip Toe Nail Salon recently opened at 1318 E. Main St. in Carbondale. A ribboncutting ceremony, hosted by Carbondale Chamber of Commerce, was June 10. The full-service nail salon, owned by Sean Schmidt, is open from 10 a.m. to 7 p.m. Monday through Saturday.

Darla Harms of Carterville has been named production director at Christian Life Center in Herrin. Harms previously worked at Unity Christian School in Energy.

Western Baptist is fit-friendly

Martin joins Easterly Insurance The law firm of Mathis, Marifian & Richter, Ltd., recently announced that

Lantz earns national recognition Carl Lantz, a native of Carbondale, was one of five law enforcement officers in the National Wildlife Refuge System who won honors for outstanding police work in their respective geographic regions. Based at Crab Orchard National Wildlife Refuge in Southern Illinois, Lantz was awarded 2011 Refuge Officer of the Year for his region.

Snavely to direct S.I. market Scott Snavely has been named as Regions’ new city president and consumer sales manager for its Southern Illinois market. The announcement coincides with the move of current Southern Illinois city president Scott Pate to the bank’s North Indiana market. In this role, he will drive business development initiatives and direct the daily operations for Regions’ Southern Illinois market. Regions has 99 associates and 12 branches in Southern Illinois.

Harms named director

Western Baptist Hospital in Paducah has been named a 2011 Fit-Friendly Company by the American Heart Association for its efforts to improve the health of its employees. Western Baptist is the region’s exclusive Sitter joins AgriGold sponsor of the American Heart Tyler Sitter of Jonesboro has joined Association’s Start! walking program. In AgriGold as a sales intern serving Southern Illinois. He places field signs and addition to the walking program, Western works closely with his local corn specialist Baptist offers free screenings, reducedcost Weight Watchers classes, smoking Jeremie Nothdurft as a part of the 2011 cessation assistance and healthy meal sales internship program. Sitter is a student at Southeast Missouri choices. State University.

Small named chairman

Martin specializes in all types of personal and commercial insurance, and she has an extensive background as a financial representative for former employer, Country Financial. She can be reached at 618-542-5370 or jenny@easterlyinsurance.com.

Jennifer Martin recently joined Easterly Insurance Agency in Du Quoin. As a property and casualty producer,

Assurity names manager Assurity at Work, the Worksite Sales Division of Assurity Life Insurance Company, headquartered in Lincoln, Neb., has expanded its Midwestern sales team with the addition of five regional sales managers. Amber Huebner brings extensive sales and management experience to serving distributors and employers in Illinois outside the Chicago metro area, as well as eastern Missouri and eastern Iowa.

Shelter honors Madden Merissa Madden, an agent for Shelter Insurance Companies in Carbondale, has been honored as one of Shelter’s highest achieving sales representatives, based on overall 2010 agency operations. The Champion designation recognizes members of a select group of Shelter agents who demonstrate the highest overall excellence in insurance services and meet corporate standards of sound agency operation during the previous year.

JULY 2011

SOUTHERN BUSINESS JOURNAL

Financial Outlook Hitting the debt ceiling: A minute with University of Illinois economist J. Fred Giertz BY J. FRED GIERTZ SBJ CONTRIBUTOR

How worried should we be about hitting the debt ceiling? I would say don’t worry about the debt ceiling. Worry about the real thing, which is how we get back to long-term Giertz economic stability. That doesn’t require reducing our debt to zero overnight. It just requires us not to grow it as fast as it has been growing recently. How did we get to this point, and has raising the debt ceiling always been this contentious? For many years, the federal government has had a rule whereby it has to approve increases in borrowing once it surpasses a certain level. Now, we’re at the point where we’ve exhausted the amount of borrowing that has been authorized. To continue borrowing, we have to raise the debt ceiling. Usually, that’s done more or less automatically with a little bit of complaining. But now, with the Republicans in control of the House, there’s a threat to actually not approve

Find more business news at www.sbj.biz. the debt ceiling. So, you have an odd situation where Congress has approved spending a trillion dollars more than it takes in, and the only way to finance that is to borrow money. On the one hand, Congress has approved that money. But, on the other, it’s saying we’re not going to raise the debt ceiling to allow us to do that borrowing. It simply doesn’t make any sense.

Is it a good idea for Republicans to use the debt ceiling for political purposes, as a means of extracting some kind of deal? It’s not a good strategy because it risks our credit rating, and it’s probably not going to be successful anyway because everyone thinks they’re bluffing. It’s playing games with a serious situation, and it could cause problems in terms of international financial markets. To keep our current situation stable, we need people to keep buying our debt. Keeping people guessing as to whether we’ll be able to pay off our bonds is not a good strategy.

SEE DEBT / PAGE 23

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The situation is one where we have to reduce our borrowing. We’re spending up to a trillion and a half more than what we’re taking in; that’s obviously not a sustainable path.

SOUTHERN BUSINESS JOURNAL

JULY 2011

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Beginning Access 2003: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu.

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July 11 Beginning Excel 2003: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu.

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Aug. 2 Beginning Excel 2003: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu.

July 19 Beginning PowerPoint 2003: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu.

Aug. 3 Beginning Access 2007: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu.

July 20 Intermediate Excel 2007: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu.

July 21 Intermediate Access 2003: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu.

July 22 Beginning QuickBooks 2009: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618-985-2828, ext 8510 or email cbi@jalc.edu.

Aug. 4 Beginning QuickBooks 2009: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618-985-2828, ext 8510 or email cbi@jalc.edu.

Aug. 9 Intermediate Excel 2003: 8:30 a.m. to 4 p.m., Room F112, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $55. Call 618985-2828, ext 8510 or email cbi@jalc.edu. Team Building: 8:30 a.m. to 4 p.m., Room F110, John A. Logan College Center for Business & Industry, 700 College Road, Carterville. Cost is $90. Call 618-9852828, ext 8510 or email cbi@jalc.edu.

Find more business news at www.sbj.biz.

JULY 2011

SOUTHERN BUSINESS JOURNAL

Business Fine Print PERMITS | BANKRUPTCIES

Building permits Carbondale Tip Toe Nail Salon, 1318 E. Main, $7,000 East Main Shell, 534 E. Main, $25,000 Walmart, 1450 E. Main, $21,000 Dr. Sean Burke, 600 N. Giant City Road, $126,000 Lone Star Steakhouse, 1160 E. Main, $2,500 Sun Valley Estates, 1105 Black Diamond Drive, $219,800 Sun Valley Estates, 1115 Black Diamond Drive, $219,800 NeuroRestorative, 1271 E. Walnut St., $20,000 NeuroRestorative, 1271 E. Walnut St., $20,000 Michael Scott, 409 E. Lasch St., $1,000 James Summers, 605 N. Springer St., $25,000 Sorensen Enterprises, 608 N. Almond St., $15,000 Alleman Rentals, 701 S. James St., $5,000 Daniel Edwards, 501 N. Billy Bryan, $20,000 David Miller, 2012 S. Illinois Avenue, $2,000 Home Rentals, 901 W. McDaniel St., $25,000 Todd Smith, 1509 W. Walnut St., $800 Eunice Rowe, 416 E. Larch St., $2,000 Leslie and Christine O’dell, 212 S. Mark Court, $1,300 John and Patricia Pieczka, 209 W. Walnut St., $3,000 Christal O’Guinn, 104 S. Lark Lane, $350

Marion Gordon Reynolds, Wild Rose, $140,000 SI Property, 802 Mountaineer Lane, $250,000 Tim and Rita Williams, 1407 Augusta Drive, $350,000 Bruce Electric, 708 E. Main, $60,000

Metropolis Jill Hatton, 210 E. 19th St., $0 Jim Phelps, P.O. Box 636, $4,000 Jesse Jacob, 306 Oak Drive, $2,000 Stacey Watson, 67 Adkins St., $525 Linda Rick, 804 W. 10th St., $20,000 Dairy Queen Brazier, 401 E. 5th St., $13,000

Murphysboro Graham Morgan, 432 North St., $1,800 Sharon Horton, 2007 Logan St., $3,000 George Launius, 326 N. 12th St., $800 Angela Rogers, 1602 Grace St., $3,200 Janet Stein, 360 Wells St., $14,701 Bob Eaton, 2331 Clay St., $3,000 Darby McGrann, 2107 Wall St., $8,500

Gloria Estrada, 1335 Hall St., $7,000 Dan Bratton, 12 Suburban Drive, $10,000 Lee Marks, 220 S. 17th St., $2,030 Margaret Walker, 942 N. 21st St., $15,000 Carl Cauble, 1908 Minton St., $3,640 Betsy King, 1528 Logan St., $5,400 Stephen and Kellee Ticer, 536 Murphy St., $700 Orlando Martorani, 2124 Elm St., $5,100 Bobby Alexander, 411 N. 8th St., $2,500

Bankruptcies Chapter 7 Stephanie A. Smith, 5757 Illinois 154, Pinckneyville Charles L. Summerfield, 1901 Cherry St., Lot 84, Mount Carmel John C. and Marnie J. Glazier, 3867 S. Illinois Ave., Carbondale Donald L. White, 715 N. 16th St., Herrin Stevie Lynn and Clayton Lee Pyle, 112 E. Carline, Carrier Mills Timothy W. and Sarah E. Racey, 1613A Yost Drive, Marion Keith W. Bush, 231 S. Court St., 17, Benton Randal C. Atkinson, 803 Nelson Ave., Johnston City Sherri L. Wiegand, P.O. Box 183, Marion Joe L. and Mary Ann Pearson, R.R. 2 Box 490, McLeansboro Debra J. Smith, 923 Poplar St., 923 Mount Carmel Thomas Joe and Angela Dawn Tougaw, 1011 W. Fifth, Mount Carmel William A. and Marilyn S. Kerly, 614 E. Webster St., Benton Joy Susanne Groneck, 515 W. Adams, Nashville Brian Lee Mehring, 10260 Brickey Road, Red Bud James F. Porm, 1203 Enterprise Way, Apt. 257, Marion Craig D. Cox, 4019 Herrin Road, Carterville Barbara A. Walker, 1404 N. Magnolia, Marion Gar y W. and Mar y E. Strothmann, One Strothmann Lane, Murphysboro Richard A. and Tina M. Cavanaugh, 2601 Fairway Drive, Energy Matthew C. Nelson, 1309 Gilpin St., Carmi Leonard D. Neideffer, 16584 N. Illinois 37, Rolling Meadows 70, Mount Vernon Phyllis J. Clark, 26 Ash St., Fairfield Jason P. Edwards, P.O. Box 221, Creal Springs Pamela J. Mays, 901 E. Main St.,

Apt. C, Fairfield Doris J. Westerman, R.R. 3 Box 169, Fairfield James Throgmorton, 4204 Westwood Drive 6, Mount Vernon Brad A. Stover, P.O. Box 5, Creal Springs Tammy S. Bundy, 1014 Blakely St., Benton Ellis Richard and Michele Renee Pratt, 1505 Benton St., Johnston City George and Holly Motsinger, 6188 Washington, Mulkeytown Larry B. and Audrey F. Wrye, 28 Hayden Lane, Metropolis Melissa A. Boggess, 3414 Riverview Road, Metropolis Suzette S. and Thomas E. Cole, P.O. Box 423, Ullin Angela Dawn Knarian, 727 Nor th St., Murphysboro Michaela R. Cook, P.O. Box 430, Anna Gertrude Hillyer, 1551 N. Franklin St., Benton Jenna L. Malone, 1115 S. Land St., Harrisburg Mar tin W. and Angela E. Greatline, 1360 Illinois 130, Albion Randy E. and Brenda K. Wiggins, 611 N. Brown, Benton Judy A. Morris, 1313 N. Ninth, Apt. 3, Herrin Richard A. Naeger, 1012 Fieldcrest Drive, Red Bud James L. and Matha J. Thorn, P.O. Box 115, Browns Heather M. McCorquodale, 159 Hillside Terrace, Anna Kenneth W. and Teresa G. Back, 6615 U.S. 45 South, Carrier Mills Kyle Lynn Brand, 906 S. Sunset, Pinckneyville Mary Sahlin, 301 N. 14th St., Number 604, Herrin John David Whaley, 518 E. Adams St., Nashville Hosea Wesly Eubanks, 712 E. Second St., Buckner Jon Brian Taylor, 608 E. Samuel, Christopher Jenny Carol Fronek, 130 S. Division, Du Quoin Mark A. Johnson, 2400 Dogwood Road, Carbondale Melody A. Vinyard, 355 Birch Tree Drive, Goreville Jill Maaks, 407 Jesse Lane, Herrin Jason R. and Krystal R. Bowers, 318 Walnut St., Zeigler James R. and Joyce D. Merz, P.O. Box 527, Carterville Rebecca M. Eddleman, 145 W. Gross, Dongola Jayson W. and Bobbi J. Ray, 7593 Sunnybrook Road, Marion Geraldine M. Collins, 208 S.

Vine St., Harrisburg Charleen F. Bebout, 1306 S. Holland, Harrisburg Pamela Gail Brock, R.R. 1 Box 26A, Broughton Joshua E. Easton, 1604 E. Lindell, West Frankfort Dale W. and Shana M. Anderson, 369 N. Elm St., Nashville William E. and Elizabeth R. Hayes Jr., 318 N. Seventh St., Herrin Lindberg J. and Norma J. Fleming, 1300 W. Walnut, Marion Amy M. Henderson, 613 N. Ninth, Herrin Todd Richard and Adeana Sue Hayden, 2080 Tyler Bridge Road, Creal Springs Douglas Kirby, 14876 Old Franklin Road, Marion Cindy Ann Georgewitz, R.R. 1 Box 159B, McLeansboro Pete Michael Garavalia, 2400 Blue Blaze, Lot F17, Herrin Norma Dean Myers, 1413 Lincoln Drive, Benton Robert Lance and Cherra Lyn Hilliard, 806 E. Garland, West Frankfort Lenard Arthur Parr, 1221 W. Fifth St., Mount Carmel Brian George Evans, R.R. 1 Box 237, Broughton Gina D. Lisenby, 1004 S. 24th St., Mount Vernon Jeffery A. and April R. Murray, 829 Dewey St., Eldorado Polly I. Andrew, 38 Crosby Lane, Carbondale Scott A. Anderson, 807 E. Fifth St., Metropolis Pamela Maria Baltzell, 5876 Topaz Lane, Waltonville Scott A. Lamotte, 1200 Illinois Ave., Fairfield John R. Hacko, 2022 Mallard Lane, Carbondale Billy and Angela Gundlach, 23788 N. Lopez Lane, Dix Jeffrey W. and Cindy J. VanCleve, 604 Washington St., Vienna James D. Hill Jr., 13506 N. Woodlawn, Woodlawn John David and Marie Ann Iffert, 126 S. Poplar, Tamaroa Dorian Jane Sabatini, 8442 Emling Road, Du Quoin David L. and Kathy L. Hollorman, 402 W. Eighth, West Frankfort

Chapter 13 Lonnie R. and Jennifer A. Darter, 1404 N. Glendale St., Marion SEE FINE PRINT / PAGE 23

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JULY 2011

SOUTHERN BUSINESS JOURNAL

Business Fine Print PERMITS | BANKRUPTCIES Shawn O. McClure, 525 S. Eighth St., Herrin Frank and Shirley J. Green, P.O. Box, 620, Cairo Vanessa K. Wallace, P.O. Box 208, Christopher Kelly J. Unterfer, 442 N. 16th St., Murphysboro Loxie U. Sanders, 426 E. End St., Carrier Mills Jeffrey D. and Sherry L. Reed, 1810 E. Poplar, West Frankfort Melissa J. McKinney, 1100 Brush St. Johnston City Steven E. Newberry, P.O. Box 387, Dongola Leah Hamilton, P.O. Box 64, Ullin Joseph L. and Michelle A. Hernandez, 621 S. McKinley St., Harrisburg Barbara J. Pierson, 124 McCann St., Benton Michael L. and Arlean B. Korando, 908 Stratton St., Chester Kim E. Albers and Brenda S. Albers, 8365 Illinois 146 East, Dongola Everett J. and Brenda S. Goddard, 128 McCann St., Benton Margaret Ann and James Winton Sitzes II, 117 Locust St., Red Bud Randall B. Steele, 1005 S. Main St., Coulterville Jimmy and Amie Ingersoll, 105 Laclede Ave., Carterville Frank M. and Molly K. Mulholland, 803 1/2 W. Pecan St., Apt. D., Carbondale Joseph A. and Tammy J. Henshaw, 152 E. Vienna St., Apt. 4, Anna Marvin E. and Barbara L. Cripps, 233 N. 13th St., Apt. 703, Murphysboro Kyle E. and Linda K. McMahon, P.O. Box 233, Grand Tower Raymond and Iris Barney, 2028 Walnut St., Murphysboro Richard J. Reynolds, 195 Pond Road, Vienna Nathan Angelo and Lorraine Marie Bruno, P.O. Box 42, Radom Edward Y. and Debra L. Downey, 509 W. Helen St., Christopher Larman and Virginia Shaneyfelt, 4350 Illinois 146 West, Vienna Nicole L. Diefenach, 9658 Illinois 166, Marion Jerry D. and Donna J. Nicholson, 208 S. First St., Mound City Brandy D. Patton, 66 S. Main, Raleigh Jack R. and Gloria D. McReynolds, 508 S. Locust, West Frankfort Dawn R. Meekin, 809 Cottonwood Lane, Carterville Darrell E. Stein Jr., 12182 Cedar Groves, Marion Jonell Followell, 1311 N. Main St., Benton

Find more business news at www.sbj.biz. Norman H. Pyles, 1311 N. Main St. Benton David Bruce and Chanda Lee Green, 14 Virginia Road, Carbondale Brad A. Carter, 1504 N. Logan, Marion Renee D. Smyser, 151 Hoffman Road 35, Murphysboro Jon B. and Heather M. Maleski, 120 N. 39th, Herrin James R. Kranz, 59 Squirrel, Ava Johnny A. Schneider, P.O. Box 514, Dongola Carolyn A. Craig, 17021 Gabby Road, Marion Steven and Laura A. Marshall, 1412 E. Madira Way, Carbondale David M. and Debra A. Giliam, 502 W. Colp Ave., Pittsburg Andrew James and April Lee McCann, 12 Sunset Gardens, Murphysboro Jason M. Wade, 607 Newton, Johnston City Harold W. and Connie L. Sigler, P.O. Box 1091, Mount Vernon Kiffy R. Sanders, 111 S. Lincoln, Royalton William J. and Shavona L. Isom, 212 N. Reader St., Mounds Jackie L. and Betty Diane Lentz, 1000 W. Clark Trail, Herrin Rea S. Porter, 410 S. Walnut St., Sesser Judith A. Cash, 410 S. Walnut St., Sesser Robert L. Miller, 1419 S. Sycamore, Centralia Charles L. Porter, 1419 S. Sycamore St., Centralia Michael D. and Billie I. Wendler, 407 W. Harrison, Carrier Mills William S. Shockley, 218 22nd St., Grand Tower Matthew Thomas and Misty Dawn Eisenhauer, 321 E. Park, Du Quoin Mark Lee and Debra Lynn Hancock, 1003 Meadow Drive, Sparta Kyle G. and Jessica L. Valleroy, 931 Church St., Evansville Shannon M. Plonka, 105 S. First St., Elkville Michael Shannon and Tina Marie Stone, P.O. Box 73, Olive Branch George Arthur and Deborah Jean Hunt, 150 Mitchellsville Road, Carrier Mills Carl R. and Jeannine S. Calhoun, 1753 Graeff Road, Elkville Scott E. Barney, 11236 Shadow Road, Marion Ralph L. and Nancy J. Karch Jr., 866 S. Heaman St., Nashville

ASSET PROTECTION: A form of insurance FROM PAGE 15 a Delaware DAPT. South Dakota also is among the big four DAPT states. Yet, it has a moderately long, three-year statute of limitations. In addition, like Delaware’s statutes, South Dakota’s DAPT laws allow divorcing spouses to pierce the DAPT and gain access to the assets in the trust. Alaska’s DAPT laws provide for a long, four-year statute of limitations, and divorcing spouses can gain access to the assets in the trust. Thus, if you place your igloo in an Alaska DAPT, you might lose it to your spouse. Nevada’s DAPT statutes provide the best protection for those who want to insure what they have spent a lifetime building and growing. The statute of limitations is only two years, and there are no statutory exceptions granted to creditors, such as divorcing spouses or

pre-existing tort creditors. Attorney Robert L. Moshman, in an article that appeared in the November 2010 issue of The Estate Analyst, opined that “it would be a cruel and unwanted result if someone from a non-DAPT state chose to set up a DAPT in Alaska or Delaware and had a creditor reach the DAPT assets more than two years after the transfer [of assets into the DAPT].” Go to http://astonfunds.com/ news/download/454/1291665357_EA112 010.pdf for Mr. Moshman’s article and more information on the use of DAPTs in asset protection planning. RICHARD HABIGER is an elder law attorney, who focuses on asset protection, Medicaid and VA benefits, and he is author of the Illinois edition of “How to Protect Your Family’s Assets from Devastating Nursing Home Costs: Medicaid Secrets.” You may contact him at 618-549-4529 or info@HabigerElderLaw.com.

DEBT: A minute with J. Fred Giertz FROM PAGE 19

Do you think the Republicans will eventually fold in this game of brinksmanship? I hope they will, because it certainly doesn’t accomplish anything in terms of addressing the real problem. What can be done to avoid a similar showdown in the future? The situation is one where we have to reduce our borrowing. We’re spending up to a trillion and a half more than what we’re taking in; that’s obviously not a sustainable path. The way you deal with that is to do one of two things: Find more revenue, or think of ways to reduce the growth in spending. We need to start doing this now — and even more seriously over the course of the next decade. Hypothetically speaking, one way to do it — but one that we’re absolutely not about to do — is to cut spending by a trillion dollars. Stop and think about that for a moment. You’re talking about cutting 7 to 8 percent of the amount we’re spending in the whole country. That would be a catastrophic situation.

Eventually, we have to get back into harmony with spending and taxation, but it’s not something we can do instantaneously. To take a less extreme approach, people have said we could do some ad hoc measures. We could pay the bondholders first to keep our credit rating high and not cause a credit crisis, and then we could start selling assets and not pay our bills on time, things of that nature. Well, that’s the strategy the state of Illinois has been using for decades, and look at where it’s gotten us. So, it’s not a reasonable longterm strategy. The debt ceiling is a symptom of the problem, but it’s not the problem itself. If you want to really address the issue, you need to get at the cause, which is either spending or taxation. But, it has to be done in a measured way over a period of time, not cold turkey. J. FRED GIERTZ is a University of Illinois professor of economics and member of the Institute of Government and Public Affairs at Illinois. In an interview with News Bureau Business and Law editor Phil Ciciora, he discussed the economics of the debt ceiling debate.